The Cardano market has had several positive fundamentals over the last few weeks, coinciding with the overall positive momentum in the global crypto market.
Bitcoin price recently crossed the $100,000 mark, and other major altcoins like BNB, Tron, and Solana have reached new all-time highs.
Key developments driving ADA’s growth
Cardano (ADA) is among the top altcoins that have made significant gains since the start of the bull market and the recent altcoin season. This growth occurs alongside bullish developments in the Cardano ecosystem.
For instance, Cardano’s Hydra tests achieved over 1 million transactions per second (TPS) on December 3, its DeFi ecosystem grew from under $200 million in July to about $700 million today, and the Cardano constitution drafting has garnered over 25,000 viewers worldwide.
The ADA price has increased by 270.76% over the past month and by 22.13% over the past week. It has also risen by 1.50% in the last 24 hours, bringing its price to $1.22 at the time of this report.
Technical indicators from TradingView show that Cardano’s price has broken above key moving averages, with the 50-day moving average at $0.63 and the 100-day moving average at $0.49. This suggests a positive market outlook.
Although the trading volume in the last 24 hours has dropped by 32.85%, the Bollinger Bands are widening. The upper band is at $1.32, and the lower band is at $0.64, indicating more price volatility and the possibility of further increases.
Is $2 the next milestone for Cardano price?
Data shows that the key resistance level for ADA is at $1.24, just above the current trading price. Breaking above this level is important because it could lead to a stronger price increase.
At the same time, the support level is at $0.98, based on the Bollinger Average. This means the current positive trend will continue as long as the Cardano price stays above this support. If ADA breaks $1.24, it could then test $1.32, which is the upper Bollinger Band, and possibly reach even higher prices.
To reach $2, the ADA coin must overcome several critical levels. The first target is $1.32, which serves as short-term resistance. After that, the next significant barrier is $1.50, where some traders might take profits.
If ADA exceeds $1.50, the next major targets are $1.75 to $1.80. This could set the stage for a rally to possibly $2. Historically, $2 has been a strong resistance level, so maintaining a positive trend supported by trading volume and market sentiment is crucial.
Read more: Bitcoin Price Prediction for December 2024
